Cut in withholding tax gives workers an extra €12 to €21 per month
A table published mid‑week reduces the rates, putting more money into workers' bank accounts each month for those who do not receive pay rises in 2026.
IRS 2026: What changes with the new withholding tax tables?
The new withholding tax tables have already come into effect. Paulo Ribeiro Pinto, the Economics editor at Negócios, explains what changes.
Income taxes in Portugal to be reduced
Home News Income taxes in Portugal to be reduced Income taxes in Portugal to be reduced To reflect the new reduction in income tax at the start of 2026, the government will need to update the withholding tax tables applied to employees and pensioners.
OE2026: New year brings cut to personal income tax and relief reflected in monthly withholdings
The 2026 State Budget (OE2026) introduces a reduction in IRS (personal income tax), resulting in lower monthly withholding taxes taken from wages and immediate financial relief for taxpayers.
